Answer: a) $1,000 + $1,000 x .08 x 3 = $1,240
Explanation:
Monthly retirement Benefit at age 67 = $1000
Incremental rate on benefit beyond age 67 = 8%
Incremental rate on benefit beyond age 70 = 0
Period = 70 - 67 = 3years
Estimated monthly benefit at age 72;
Monthly benefit at age 67 + (monthly benefit at age 67) × incremental rate × increment period × 12
$1000 + ($1000 × 0.08 × 3 )
$1000 + $240.00
=$1240
Similarly,
This means monthly rate = 8% / 12 = 0.0066667
Total period = 12 × 3 = 36 months
Total = Principal + (principal × rate × time)
1000 + (1000 × 0.0066667 × 36)
1000 + 240.0012
1,240.0012 = 1240
Answer:
The current dividend per share = 1.89
Explanation:
13% = {[Dividend * (1 + g)] / $31} + g
g = 13% / 2 = 6.5%
13% = {[Dividend * (1 + 6.5%)] / $31} + 6.5%
6.5% = Dividend * (1 + 6.5%)] / $31
$31 * 6.5% = Dividend * (1 + 6.5%)
$2.015 / 1.065 = Dividend
Dividend = $1.89
Answer: Merv will reduce his price to respond to the price competition from the Home Shoppe.
Explanation: Ideally, people always look for the best deal they can get. The home shoppe offers the same product for less price. Customers will naturally troop to the home shoppe because of the lower price of garnet sandpaper. In order for Merv to compete with a big store, he has to start with his prices first.
Answer:
$2,000
Explanation:
net operating income = total contribution - common fixed expenses